Insuring buildings appears to be a simple while they need specialised care writing the right policy. There are many aspects of the cover which need to be considered. It can be determining the correct value of an old building or covering the risk of a lift liability or liability arising out of injury or property damage from third parties. A professional insight can plug all possible gaps for the best possible cover.
Resident or Commercial building associations can buy a cover for an apartment or Commercial Complexes jointly reducing cost of insurance bought individually. An insurance bought by some individuals cannot help in a reconstruction if other owners have not insured themselves.
How to Insure
Often buildings are insured with little clarity on the inclusions. Despite insuring the building, the boundary walls, roads, underground cables, gas banks or security sheds may go uninsured. Buildings like Malls may need an all risk insurance. Consult the specialists before you insure.
Any large commercial premises expose the owners to Public liabilities risk. A lift or escalator hazard or injury or death caused due to an accident can all lead to potentially large liability. A damage to a visitor car while in parking or by a valet can all lead to claims on the owners.
Insurance for machinery is usually overlooked in buildings. AMCs do not cover short circuit or accidental damages to lifts and escalators. D.G Sets, HVACs or Air Conditioners are all prone to accidental damages including own fault damages which can be insured.
Loss of Rent
Commercial buildings can have significant loss of rent arising from any peril related damages for sustained periods. Malls can be severally affected by complete loss of business for years. Purchasing a Loss of rent cover or Business interruption should be a part of building insurance.
Most Commercial buildings have significant levels of external Glass, while all buildings will have varying levels of internal Glass. Insuring Plate Glass ensures minimal repairs cost for accidental damages including cost of glass, transportation, fixing and associated costs.